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This Week's Hidden Gems: (BUFF)(POOL)

Tracey Ryniec

Great investing opportunities exist everywhere in the stock market. But how do you find them?

Tracey Ryniec, Stock Strategist at Zacks Investment Research, discusses two hidden gems that might be worth a closer look at by investors: Blue Buffalo Pet Products Inc. (BUFF) and Pool Corporation (POOL).

Hidden gems are stocks that are followed only by a handful of Wall Street analysts and which the rest of the stock market doesn’t pay much attention to but they should because their fundamentals are strong.

Blue Buffalo went IPO in 2015. It is the #1 pet food brand in the natural market segment, making all natural cat and dog food out of whole meats, fruits and vegetables.

As people eat healthier, they want their pets to be eating healthier too. Natural pet food is a growing niche market. Pet food is a $27 billion a year industry with natural food making up just a fraction of the total.

POOLCORP is cashing in on the strong US economy and people’s desire for more experiences. The pool market has been strong.

POOLCORP saw record sales in 2016 of $2.57 billion. Another warm winter in a large part of the United States will again extend the pool “season” which should boost 2017’s results.

But what else should investors take away from these two companies? Watch our short video below to learn more about these hidden gems.

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Pool Corporation (POOL): Free Stock Analysis Report
 
Blue Buffalo Pet Products, Inc. (BUFF): Free Stock Analysis Report
 
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Zacks Investment Research